On the Beach remains optimistic despite 66% slide in revenue
On the Beach said it remained optimistic despite revenue falling by two-thirds during the Covid-19 pandemic.
The Manchester-based holiday firm said it had been trading well before lockdown, with summer bookings up 29% as it filled some of the gap left by the collapse of Thomas Cook.
But Covid-19 had seen revenue slip by 66% to £21.4m for the six months to the end of March, with profit before tax falling £13.4m to £2.3m.
The company estimated the total cost of the pandemic for the period to be £34.7m for the half-year, mainly due to cancellations.
Despite the results, chief executive Simon Cooper said the company was "well placed to capitalise on the inevitable structural changes" post-Covid.
He said: “On the Beach continues to successfully build a leading position as more consumers discover the ease of use and wide choice of beach holidays across our platforms.
“The flexibility and asset light nature of our business model together with our recently strengthened balance sheet and the actions we have taken since the middle of March means we are well placed to capitalise on the inevitable structural changes in the market post Covid-19.
“As a result, the board continues to look to the future with confidence.”
The company also said that finance chief Paul Meehan had resigned and would be replaced by group finance director Shaun Morton.
Cooper added: "Shaun has a built a strong understanding of the online travel industry since joining the group and I look forward to working with him as we deliver on our strategy to become Europe's leading online retailer of beach holidays."